Mozambique: Treasury bond issue to have 14 to 15 pct interest

8 August 2008

Maputo, Mozambique, 8 Aug -The recently announced issue of bonds by the Mozambican Treasury to cover a budget deficit will pay interest of between 14 to 15 percent, the head of the Maputo stock exchange, Jussub Nurmamad, has told macauhub.

The Maputo government said Wednesday a bond issue valued at 360 million meticais, or about US$ 15.4 million. The chairman of the Maputo bourse said the issue would take place before November.

Mozambique’s commercial banks pay interest of 17 percent on deposit accounts. Since 1999, the Maputo government has only failed to issue Treasury bonds in 2006 and 2007. The biggest such offer was in 2003 with a total value of US$ 65 million. (macauhub)